Cytek Biosciences Reports Fourth Quarter and Full Year 2021 Financial Results

Feb 23, 2022

2021 Revenue Increased 38% Compared to Prior Year

FREMONT, Calif., Feb. 23, 2022 (GLOBE NEWSWIRE) -- Cytek® Biosciences, Inc. (“Cytek Biosciences” or “Cytek”) (Nasdaq: CTKB) today reported financial results for the fourth quarter and full year ended December 31, 2021.

Recent Highlights

  • Total revenue was $38.9 million for the fourth quarter and $128.0 million for the full year of 2021, representing 27% and 38% increases over the corresponding periods of 2020, respectively
  • Expanded the installed base to 1,110 instruments, with 140 instrument placements during the fourth quarter and 453 placements during the full year 2021
  • Closed the acquisition of Tonbo Biosciences’ reagents business
  • 385 peer-reviewed publications in scientific journals to-date, predominantly covering subjects in infectious disease, immunology, immunotherapy, immuno-oncology, and oncology
  • Opened new facility in Fremont, California, tripling previous manufacturing capacity to meet growing global demand for cell analysis solutions

"Our team ended the year on a strong note, executing well across our business and continuing to expand our installed instrument base significantly. We are also pleased with the increased demand we are seeing for our new high-dimensional spectral sorters, which extend our cell analysis offerings,” said Dr. Wenbin Jiang, CEO of Cytek Biosciences. “Through the launch of our additional cFluor reagent and reagent kits, along with the closing of the Tonbo acquisition, we have meaningfully enhanced our reagent portfolio offering, all while tripling our manufacturing capacity. We plan to continue building on our progress and providing our flow cytometry solutions to more users around the world.”

Fourth Quarter 2021 Financial Results
Total revenue for the fourth quarter of 2021 was $38.9 million, a 27% increase over the fourth quarter of 2020.

Gross profit was $23.6 million for the fourth quarter of 2021, an increase of 22% compared to a gross profit of $19.4 million in the fourth quarter of 2020. Gross profit margin was 61% in the fourth quarter of 2021 compared to 64% in the fourth quarter of 2020.

Operating expenses were $22.3 million for the fourth quarter of 2021, a 92% increase from $11.6 million in the fourth quarter of 2020. The increase was primarily due to expenses to support continued growth of the business, including costs related to operating as a public company.

Income from operations in the fourth quarter of 2021 was $1.3 million compared to $7.9 million in the fourth quarter of 2020. Net income in the fourth quarter of 2021 was $0.3 million compared to net income of $5.6 million in the fourth quarter of 2020.

Adjusted EBITDA in the fourth quarter of 2021 was $5.5 million compared to $8.4 million in the fourth quarter of 2020, after adjusting for stock-based compensation expense and other non-recurring expenses.

Full Year 2021 Financial Results
Total revenue for the year ended December 31, 2021 was $128.0 million, a 38% increase over the year ended December 31, 2020.

Gross profit was $79.1 million for the year ended December 31, 2021, an increase of 53% compared to a gross profit of $51.7 million in the year ended December 31, 2020. Gross profit margin was 62% in the year ended December 31, 2021 compared to 56% in the year ended December 31, 2020.

Operating expenses were $70.0 million for the year ended December 31, 2021, an 84% increase from $38.1 million in the year ended December 31, 2020. The increase was primarily due to expenses to support continued growth of the business, including costs related to operating as a public company.

Income from operations in the year ended December 31, 2021 was $9.2 million compared to $13.7 million in the year ended December 31, 2020. Net income in the year ended December 31, 2021 was $4.4 million compared to $19.4 million in the year ended December 31, 2020.

Adjusted EBITDA in the year ended December 31, 2021 was $17.5 million compared to $15.4 million in the year ended December 31, 2020, after adjusting for stock-based compensation expense and other non-recurring expenses.

Cash and cash equivalents were approximately $365 million as of December 31, 2021.

2022 Outlook
Cytek Biosciences expects full year 2022 revenue to be in the range of $160 million to $168 million.

Webcast Information
Cytek will host a conference call to discuss the fourth quarter 2021 financial results on Wednesday, February 23, 2022, at 2:00 p.m. Pacific Time / 5:00 p.m. Eastern Time. A webcast of the conference call can be accessed at investors.cytekbio.com.

About Cytek Biosciences, Inc.
Cytek Biosciences is a leading cell analysis solutions company advancing the next generation of cell analysis tools by delivering high-resolution, high-content and high-sensitivity cell analysis utilizing its patented Full Spectrum Profiling™ (FSP™) technology. Cytek’s novel approach harnesses the power of information within the entire spectrum of a fluorescent signal to achieve a higher level of multiplexing with exquisite sensitivity. Cytek’s FSP platform includes its core instruments, the Aurora and Northern Lights systems, the Aurora CS cell sorter, reagents, software and services to provide a comprehensive and integrated suite of solutions for its customers. Cytek is headquartered in Fremont, California with offices and distribution channels across the globe.

Other than Cytek’s Northern Lights CLC system, which is available for clinical use in China and the European Union, Cytek’s products are for research use only – not for use in diagnostic procedures or for clinical purposes.

Cytek, Tonbo Biosciences, cFluor, Full Spectrum Profiling, FSP and Northern Lights are trademarks or registered trademarks of Cytek Biosciences, Inc.

In addition to filings with the Securities and Exchange Commission (SEC), press releases, public conference calls and webcasts, Cytek uses its website (www.cytekbio.com), LinkedIn page and corporate Twitter account as channels of distribution of information about its company, products, planned financial and other announcements, attendance at upcoming investor and industry conferences and other matters. Such information may be deemed material information and Cytek may use these channels to comply with its disclosure obligations under Regulation FD. Therefore, investors should monitor Cytek’s website, LinkedIn page, and Twitter account in addition to following its SEC filings, news releases, public conference calls and webcasts.

Statement Regarding Use of Non-GAAP Financial Information
Cytek has presented certain financial information in accordance with U.S. GAAP and also on a non-GAAP basis for the three- and twelve-month periods ended December 31, 2021 and December 31, 2020. Management believes that non-GAAP financial measures, including “Adjusted EBITDA” referenced above, taken in conjunction with GAAP financial measures, provide useful information for both management and investors by excluding certain non-cash and other expenses that are not indicative of the company’s core operating results. Management uses non-GAAP measures to compare the company’s performance relative to forecasts and strategic plans and to benchmark the company’s performance externally against competitors. Non-GAAP information is not prepared under a comprehensive set of accounting rules and should only be used to supplement an understanding of the company’s operating results as reported under U.S. GAAP. Cytek encourages investors to carefully consider its results under GAAP, as well as its supplemental non-GAAP information and the reconciliation between these presentations, to more fully understand its business. Reconciliations between GAAP and non-GAAP operating results are presented in the accompanying tables of this release.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections. All statements, other than statements of historical facts, may be forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,” “might," "will,” “should,” “expect,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “contemplate,” “believe,” “estimate,” “predict,” “potential” or “continue” or the negatives of these terms or variations of them or similar terminology, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include statements regarding Cytek Biosciences’ plans to continue building on its progress and provide its flow cytometry solutions to more users around the world; and Cytek Biosciences’ manufacturing capacity and full year 2022 revenue expectations. These statements are based on management’s current expectations, forecasts, beliefs, assumptions and information currently available to management. These statements also deal with future events and involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from the information expressed or implied by these forward-looking statements. Factors that could cause actual results to differ materially include risks and uncertainties such as those relating to market conditions; the ongoing COVID-19 pandemic; Cytek Biosciences’ dependence on certain sole and single source suppliers; competition; market acceptance of Cytek Biosciences’ current and potential products; Cytek Biosciences’ ability to manage the growth and complexity of its organization; Cytek Biosciences’ ability to maintain, protect and enhance its intellectual property; and Cytek Biosciences’ ability to continue to stay in compliance with its material contractual obligations, applicable laws and regulations. You should refer to the section entitled “Risk Factors” set forth in Cytek Biosciences’ Quarterly Report on Form 10-Q filed with the SEC on November 12, 2021, Cytek Biosciences’ Annual Report on Form 10-K to be filed with the SEC and other filings Cytek Biosciences makes with the SEC from time to time for a discussion of important factors that may cause actual results to differ materially from those expressed or implied by Cytek Biosciences’ forward-looking statements. Although Cytek Biosciences believes that the expectations reflected in the forward-looking statements are reasonable, it cannot provide any assurance that these expectations will prove to be correct nor can it guarantee that the future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or occur. The forward-looking statements in this press release are based on information available to Cytek Biosciences as of the date hereof, and Cytek Biosciences disclaims any obligation to update any forward-looking statements provided to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based, except as required by law. These forward-looking statements should not be relied upon as representing Cytek Biosciences’ views as of any date subsequent to the date of this press release.

Media Contact:
Stephanie Olsen
Lages & Associates
(949) 453-8080
stephanie@lages.com

Investor Relations Contact:
Carrie Mendivil/Alex Khan
Gilmartin Group LLC
investors@cytekbio.com

Cytek Biosciences, Inc.
Consolidated Statements of Operations and Comprehensive Income
(Unaudited)

  Year Ended December 31, 
(In thousands, except share and per share data) 2021  2020 
Revenue, net:      
Product $119,519  $85,283 
Service  8,431   7,556 
Total revenue, net  127,950   92,839 
Cost of sales:      
Product  37,377   32,277 
Service  11,429   8,852 
Total cost of sales  48,806   41,129 
Gross profit  79,144   51,710 
Operating expenses:      
Research and development  24,442   13,693 
Sales and marketing  24,710   14,988 
General and administrative  20,825   9,370 
Total operating expenses  69,977   38,051 
Income from operations  9,167   13,659 
Other income (expense):      
Interest expense  (1,741)  (333)
Interest income  49   110 
Other income (expense), net  (1,527)  994 
Total other income (expense), net  (3,219)  771 
Income before income taxes  5,948   14,430 
Provision for (benefit from) income taxes  1,505   (4,981)
Net income $4,443  $19,411 
Less: net income allocated to noncontrolling interests  (26)  - 
Less: net income allocated to participating securities  (4,417)  (16,195)
Net income attributable to common stockholders, basic and diluted $-  $3,216 
Net income attributable to common stockholders per share, basic $-  $0.11 
Net income attributable to common stockholders per share diluted $-  $0.10 
Weighted-average shares used in calculating net income per share, basic  76,741,858   29,126,792 
Weighted-average shares used in calculating net income per share, diluted  81,546,697   32,599,847 
Comprehensive income:      
Net income $4,443  $19,411 
Foreign currency translation adjustment, net of tax  832   212 
Net comprehensive income $5,275  $19,623 


Cytek Biosciences, Inc.
Consolidated Balance Sheets
(Unaudited)

(In thousands, except share and per share data) December 31,
2021
  December 31,
2020
 
Assets      
Current assets:      
Cash and cash equivalents $364,618  $165,231 
Trade accounts receivable, net  29,760   16,990 
Restricted cash     888 
Inventories  32,171   23,018 
Prepaid expenses and other current assets  5,503   2,495 
Total current assets  432,052   208,622 
Deferred income tax assets, noncurrent  9,249   7,378 
Property and equipment, net  5,851   2,140 
Goodwill  10,144   476 
Intangible assets, net  4,739   274 
Other noncurrent assets  1,665   1,089 
Total assets $463,700  $219,979 
Liabilities, redeemable convertible preferred stock and stockholders’ equity (deficit)      
Current liabilities:      
Trade accounts payable $3,034  $2,944 
Legal settlement liability, current  1,463   6,253 
Accrued expenses  15,251   9,048 
Other current liabilities  5,331   4,626 
Deferred revenue, current  7,081   3,665 
Total current liabilities  32,160   26,536 
Legal settlement liability, noncurrent  13,745   10,959 
Deferred revenue, noncurrent  9,790   3,456 
Other noncurrent liabilities  1,204   737 
Total liabilities $56,899  $41,688 
Commitments and contingencies      
Redeemable convertible preferred stock, $0.001 par value; 10,000,000 and 87,268,694 shares authorized, zero and 87,268, 694 issued and outstanding as of December 31, 2021 and 2020, respectively; aggregate liquidation preference of zero and $199,230 as of December 31, 2021 and 2020, respectively.     194,319 
Stockholders’ equity (deficit):      
Common stock, $0.001 par value; 1,000,000,000 and 153,329,500 authorized shares as of December 31, 2021 and 2020, respectively; 133,749,663 and 31,241,916 issued and outstanding shares as of December 31, 2021 and 2020, respectively.  126   23 
Additional paid-in capital  423,625   6,491 
Accumulated deficit  (18,190)  (22,607)
Accumulated other comprehensive income  897   65 
Noncontrolling interest in consolidated subsidiary  343    
Total stockholders’ equity (deficit) $406,801  $(16,028)
Total liabilities, redeemable convertible preferred stock and stockholders’
equity (deficit)
 $463,700  $219,979 


Cytek Biosciences, Inc.
Reconciliation of GAAP to Non-GAAP Measures
(Unaudited)

 Year Ended December 31,
(In thousands, except per share amounts) 2021   2020 
GAAP gross profit$79,144  $51,710 
Stock-based compensation 1,508   232 
Amortization of acquisition-related intangible assets 237   - 
Non-GAAP gross profit$80,889  $51,942 
    
Non-GAAP gross profit % 63%  56%
    
GAAP operating expenses$69,977  $38,051 
Loss on lease exit cost (347)  - 
Acquisition related expenses (229)  - 
Stock-based compensation (5,078)  (379)
Amortization of acquisition-related intangible assets (90)  - 
Non-GAAP operating expenses$64,233  $37,672 
    
GAAP income from operations$9,167  $13,659 
Loss on lease exit cost 347   - 
Acquisition related expenses 229   - 
Stock-based compensation 6,586   611 
Amortization of acquisition-related intangible assets 327   - 
Non-GAAP income from operations$16,656  $14,270 
    
GAAP net income$4,443  $19,411 
Loss on lease exit cost 347   - 
Acquisition related expenses 229   - 
Stock-based compensation 6,586   611 
Amortization of acquisition-related intangible assets 327   - 
Tax effect of items excluded from non-GAAP results (215)  
Non-GAAP net income $11,717  $20,022 
    
GAAP net income attributable to common stockholders$-  $3,216 
Loss on lease exit cost 347   - 
Acquisition related expenses 229   - 
Stock-based compensation 6,586   611 
Amortization of acquisition-related intangible assets 327   - 
Tax effect of items excluded from non-GAAP results (215)  
Non-GAAP net income attributable to common stockholders$7,274  $3,827 
    
GAAP net income per share to common stockholders, diluted$-  $0.10 
Loss on lease exit cost 0.004   - 
Acquisition related expenses 0.003   - 
Stock-based compensation per share 0.081   0.02 
Amortization of acquisition-related intangible assets 0.004   - 
Tax effect of items excluded from non-GAAP results (0.003)  - 
Non-GAAP net income per share to common stockholders, diluted$0.09  $0.12 
    
Average shares outstanding for calculation of non-GAAP net income per share (diluted) 81,546,697   32,599,847 
    
GAAP Net Income$4,443  $19,411 
Depreciation and Amortization 1,242   603 
Provision for (Benefits from) Income Taxes 1,505   (4,981)
Interest Income (49)  (110)
Interest Expense 1,741   333 
Foreign currency exchange loss (gain), net 1,481   (463)
Loss on lease exit cost 347   - 
Stock Based Compensation Expense 6,586   611 
Acquisition related expenses 229   - 
Adjusted EBITDA$17,525  $15,404 


Cytek Biosciences, Inc.
Reconciliation of GAAP to Non-GAAP Measures
(Unaudited)

 Three-month Ended December 31,
(In thousands) 2021   2020 
GAAP gross profit$23,636  $19,449 
Stock-based compensation 717   125 
Amortization of acquisition-related intangible assets 237   - 
Non-GAAP gross profit$24,590  $19,574 
    
Non-GAAP gross profit % 63%  64%
    
GAAP operating expenses$22,309  $11,573 
Loss on lease exit cost (347)  - 
Acquisition related expenses (229)  - 
Stock-based compensation (2,291)  (146)
Amortization of acquisition-related intangible assets (90)  - 
Non-GAAP operating expenses$19,352  $11,427 
    
GAAP income from operations$1,327  $7,876 
Loss on lease exit cost 347   - 
Acquisition related expenses 229   - 
Stock-based compensation 3,008   271 
Amortization of acquisition-related intangible assets 327   - 
Non-GAAP income from operations$5,238  $8,147 
    
GAAP net income$251  $5,599 
Loss on lease exit cost 347   - 
Acquisition related expenses 229   - 
Stock-based compensation 3,008   271 
Amortization of acquisition-related intangible assets 327   - 
Tax effect of items excluded from non-GAAP results (215)  - 
Non-GAAP net income $3,947  $5,870 
    
GAAP net income attributable to common stockholders$225  $595 
Loss on lease exit cost 347   - 
Acquisition related expenses 229   - 
Stock-based compensation 3,008   271 
Amortization of acquisition-related intangible assets 327   - 
Tax effect of items excluded from non-GAAP results (215)  - 
Non-GAAP net income attributable to common stockholders$3,921  $866 
    
GAAP Net Income$251  $5,599 
Depreciation and Amortization 685   158 
Provision for (Benefits from) Income Taxes 203   2,403 
Interest Income (18)  (5)
Interest Expense 492   330 
Foreign currency exchange loss (gain), net 295   (350)
Loss on lease exit cost 347   - 
Stock Based Compensation Expense 3,008   271 
Acquisition related expenses 229   - 
Adjusted EBITDA$5,492  $8,406 


 



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